In the growing trend of outsourcing fleet management companies lies the all-important question, is it worth it? The short answer, yes.
Companies like ours are focused on managing fleets, which taught us the best ways to handle the logistics and finances. This way, it can potentially earn your business more revenue by identifying problems before it happens and finding the most efficient operating methods.
It’s the reason why outsourcing fleet management is definitely worth the cost. The expertise in managing fleets means you don’t have to worry about mishaps happening, at the same time you’ll be getting the best service possible. Just look at the several advantages that outsourcing gives:
Paying taxes can be a hassle. A fleet management company can handle the finances and payments for you so you don’t have to go through it.
Eventually, an accident will happen to a vehicle in your fleet, which can be messy and costly. By outsourcing to another company, they’ll minimise costs and go through all the required legal procedures.
It’s becoming increasingly important for companies to become environmentally friendly not only for the long-term, but because the government is pressuring companies to do so. Fleet management companies can help you with the transition to a green company, and help you make the best policies for reducing vehicle emissions.
Get rid of cars and increase funds through sale and leaseback
Sale and leaseback is when a company sells their vehicles to a fleet management company, which they will then lease back to the company. Companies will enjoy the reduced fees from leasing and by taking advantage of their sale and leaseback service, a company will be able to save a few pounds while still having access to their “own” vehicles.
Contract hire saves money
Contract hire saves money, there’s no question about it. Financially, leasing makes sense in the short-term because no one can’t deny the huge savings by leasing, not to mention the myriad of benefits it gives. The vehicles leased from a fleet management company are covered by insurance, and with a little extra, the maintenance. Businesses also don’t have to worry about paying additional costs since it’s fixed plus they’ll also handle other costs like taxes. What’s more, they can decide how long they wish to use the vehicle, and all they have to do is pay a set fee every month.
Contract purchase is a smart choice
Companies can apply for contract purchase plan option, allowing companies to purchase the vehicle after the leasing period. Lessees have the option to make a final balloon payment, which is discussed at the start of the contract, or return the vehicle to the fleet. This option is best for companies not registered for VAT so they can write off part of the VAT.
- Fleet Management Market worth $30.45 Billion By 2018 (marketreports2012.wordpress.com)